Monday the Internal Revenue Service announced that they will increase the optional standard mileage rates for the final six months of 2008 from 50.5 cents a mile to 58.5 cents a mile. The new rates are effective from July 1, 2008 to December 31, 2008. The rate increase is directly due to the recent increase in gas prices. To view the full announcement and rates for business, medical and moving reimbursements, see Announcement 2008-63.
To learn how to claim business mileage deductions and travel expenses, visit the IRS website’s “The Cost of Doing Business: Organize Travel and Business Expense”. Are you self-employed? Visit My Money Blog for a great article on Maximizing Your Business Mileage Tax Deduction.